|
PureBytes Links
Trading Reference Links
|
Hello Terry,
Thanks for this. A delightfully elegant solution.
Regards,
Kevin
At 06:18 27/01/03 +0000, you wrote:
Here's a simply but handy way of displaying
Gann division of the range (DOR) lines, fib retracements, etc. in
MS.
(IMHO) MS's fib retracement tool, for a variety of reasons, is so poorly
implemented that it is almost painful to use. This is particularly true
if you need to see several different retracements, as needed in DOR
analysis. After struggling for several years with this problem (&
mostly not using MS for this analysis), I developed the very workable
solution that I've described below. Its pretty simple and perhaps some
(or most) are already doing it, but I've not seen it described
before.
The technique is to create an indicator containing the DOR values (fib
numbers work just as well, of course) as follows 0; 12.5; 25; 37.5; 50;
62.5; 75; 87.5; 100. Next, drop this indicator on a CLEAN price window
(no other indicators). Scale price to the right scale & this DOR
indicator to the left. The result will be horizontal lines at the
division ranges. For easy identification, assign different colors to
these lines. Then save as a template and add it to the toolbar. The
result will display the division ranges for the time period that you have
displayed on the screen. To see the historical ranges, click the zoom
reset button. To see the areas for a specific move, click the zoom in
button.
Since MS will scale these ranges to any object appearing on the right
scale, don't place any other indicator (such as moving averages) in this
price window.
I've attached 2 charts showing technique for GM. Again, all I did was
click the zoom button to change the perspective.
BTW, the chart for GM pretty clearly illustrates the power of Gann's DOR
analysis. Notice that these DOR areas have provided clear support and
resistance for the price moves, as Gann observed. Based on this analysis,
it appears that GM is not a good long candidate until it clears DOR2 at
39. If its going up, price should form several weekly lows above this
area before it moves up. If it can't clear this area, its likely that it
will look for support at DOR1 (30), likely dropping somewhat below before
popping back up. If it fails to find support at 30, look for it to
revisit its lows @ 21. To me, it appears that price has been acting as it
should at the existing division areas. That means that it is very likely
we won't see a new low (or at least a significant new low) in GM if it
goes down that far (Otherwise the existing division areas would change
since they are based on the historical highs & lows), Also notice
that price hasn't spent much time since the 2000 high ne ar the DOR3 high
at 48. Sin! ce the area between DOR3 & DOR5 (@ 67) is a favorite area
for price to hang out, we can expect price to revisit this area for an
extended period @ some point in the future.
For more on DOR analysis, see the various Gann Yahoo groups, in
particular, the gannstudygroup. The murreymath groups also are helpful.
Just ignore Murrey's method of calculating the divisions (IMHO its
unnecessarily complex, convoluted and ultimately not particularly useful
compared to Gann's approach.) Murrey's observations about the various DOR
areas are just as applicable to Gann's analysis as they are to his
system.
Regards,
tob
STOP MORE SPAM with the new MSN
8 and get 2 months FREE*
Yahoo! Groups Sponsor
ADVERTISEMENT
To unsubscribe from this group, send an email to:
Metastockusers-unsubscribe@xxxxxxxxxxx
Your use of Yahoo! Groups is subject to the
Yahoo! Terms of Service.
Yahoo! Groups Sponsor
ADVERTISEMENT
To unsubscribe from this group, send an email to:
Metastockusers-unsubscribe@xxxxxxxxxxx
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
|